Low Gear company, an automotive specialty firm, is considering the acquisition of a new Differential locks manufacturing machine. Low Gear can purchase the machine through the use of its normal financing mix (45% debt and 55% common equity) or lease it. Pertinent details follow: Acquisition Useful life Salvage value Depreciation nethod Annual cash savings be tax and depreciation from the machine Rate of interest Marginal tax rato Annual rentals Annual operating expenses included in the lease Cost of capital $ 155,000 4 years $ 15,000 straight line $36.000 12% 40% $ 45 000 $4.750 14% Evaluate whether the machine acquisition is justified through normal purchase financing assuming that the expected resale price at the end of the fourth year is $ 12,000